By Reuters
Publication Date: 2026-06-10 21:38:00
June 10 (Reuters) – Microsoft‘s Xbox division is planning major layoffs next month and significant cuts to marketing and other budgets, Bloomberg News reported on Wednesday.
The job cuts would mark the first major restructuring under Asha Sharma, who took charge as CEO of the gaming unit in February.
Microsoft did not immediately respond to a Reuters request for comment.
Xbox has faced mounting challenges in recent years as Microsoft’s bet on subscriptions and cloud gaming failed to offset declining console sales and a shortage of blockbuster titles.
Sharma said Xbox’s accountability margin had fallen to 3% and that the company had spent more than $20 billion on content, platforms and hardware subsidies over the past five years even as annual revenue declined by nearly half a billion during that period, Bloomberg reported, citing an internal email to employees.
She said Xbox would need to…
